NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels, good cash flow from operations, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 170.2% when compared to the same quarter one year prior, rising from -$161.00 million to $113.00 million.
- Net operating cash flow has significantly increased by 780.00% to $68.00 million when compared to the same quarter last year. In addition, WHIRLPOOL CORP has also vastly surpassed the industry average cash flow growth rate of -45.86%.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Household Durables industry and the overall market on the basis of return on equity, WHIRLPOOL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- WHIRLPOOL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WHIRLPOOL CORP reported lower earnings of $4.96 versus $7.98 in the prior year. This year, the market expects an improvement in earnings ($6.68 versus $4.96).
Whirlpool Corporation engages in the manufacture and marketing of home appliances worldwide. Its principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. The company has a P/E ratio of 8.3, below the average consumer durables industry P/E ratio of 15.7 and below the S&P 500 P/E ratio of 17.7. Whirlpool has a market cap of $4.81 billion and is part of the
industry. Shares are up 36.2% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.